“We knew something needed to change, but getting it wrong at this stage could have made things worse.”
That concern was shared by Committee members at Monash Corporate Business Park, a large commercial and mixed-use Owners Corporation (OC) in Clayton, Victoria.
The site comprises 60 lots across three buildings, including offices, warehouses, residential components and is overseen by an 11-member Committee.
When discussions about changing the OC manager began, the timing was particularly sensitive. Significant façade works were already underway and any disruption to records, communication or contractual arrangements had the potential to impact an active project.
Rather than acting on frustration alone, the Committee wanted a clear and measured approach.
They engaged us to help them navigate the decision during active façade works, with a focus on maintaining continuity and avoiding disruption to the project already underway.
Their priority was to make decisions supported by proper process and a clear view of costs and risk.
Why changing strata managers was a difficult decision for a commercial site
Monash Corporate Business Park is not a typical residential OC. As a large commercial and mixed-use site spread across multiple addresses, the OC was managing a range of competing operational needs.
The Committee had to consider:
- different expectations across commercial and residential lots
- higher coordination demands due to the scale of the site
- major capital works already professionally tendered and underway
- the risk that a change of manager could disrupt contractors, reporting or cash flow
For a commercial site, these factors carry real consequences. Any breakdown in communication or records during a transition could delay works, create contractual uncertainty or affect day-to-day operations for occupiers.
At the time, the OC was managed by OCVM Group. The Committee agreed the incumbent should be invited to re-tender alongside other competitors.
This made the process fair and defensible and allowed the Committee to properly assess service capability and cost in the context of an active commercial site.
Understanding costs without a clear point of comparison
Cost was not the sole driver behind the Committee’s discussions, but it was an important consideration. Committee members wanted to clearly understand:
- what services they were actually paying for
- whether fees reflected the level of service being delivered
- how their costs compared with other strata managers operating in the commercial market
Like many OCs, they found this difficult to assess in practice. Management fees were bundled, service inclusions were not clearly itemised and there was no straightforward way to compare their existing arrangement against other providers.
Without proper benchmarking, the Committee was left with uncertainty.
They could not determine whether the OC was receiving value for money or simply accepting costs because changing managers during major works felt risky.
This lack of clarity reinforced the need for a structured process that allowed costs, services and capability to be assessed side by side in a way that reflected the realities of a large commercial site.
Establishing clarity before testing the market
Before any recommendation was made, we worked closely with the Committee to build a clear and factual understanding of the OC’s current position.
This involved:
- reviewing AGM minutes to confirm Committee powers and delegations
- assessing financial statements and existing management fee structures
- clarifying the incumbent manager’s scope of services and responsibilities
- understanding the structure, progress and reporting requirements of the façade works already underway
Our early review was critical. It allowed the Committee to separate assumptions from documented obligations and ensured any future comparison was grounded in accurate information rather than estimates or frustration.
It also confirmed that the OC’s situation was not suited to a simple quote comparison.
With an active commercial site and major capital works in progress, any change of manager needed to be carefully staged and defensible.
On-site engagement to understand real-world complexity
Given the scale of the site and the capital works already underway, we carried out a detailed on-site walkthrough with the Committee.
This allowed us to:
- understand the operational realities of managing a large commercial and mixed-use site
- observe how the façade works were being coordinated and reported on day to day
- allow future tenderers to price their services with full and accurate context
For commercial OCs, this step is essential.
Without a clear understanding of how a site actually operates, management proposals can appear competitive on paper while failing to reflect the true workload, level of coordination required or risk involved.
By grounding the tender process in the physical and operational realities of the site, the Committee could later assess proposals with greater clarity.
Running a competitive and fair tender process
We prepared and managed a detailed Request for Tender tailored to the commercial and mixed-use nature of the site.
The RFT:
- reflected the operational complexity of the OC
- clearly outlined the façade works already underway and associated reporting obligations
- invited multiple suitable strata management firms with relevant commercial experience
- included the incumbent manager as part of the competitive process
- allowed the Committee to review and approve the documentation before release
All submissions were assessed on a like-for-like basis. The Committee was able to compare:
- management fees
- the scope of services included
- experience managing commercial and mixed-use sites
- capability to operate effectively during active capital works
This approach meant decisions were based on evidence rather than assumptions and that both cost and service capability were assessed in the context of a live commercial environment.
Cost comparison: what the Committee could finally see
As part of the tender process, the Committee was able to clearly compare the management costs of the incumbent arrangement against the proposed fees from the newly appointed strata manager.
Rather than reviewing figures in isolation, the comparison formed part of a broader, like-for-like assessment of service scope, capability and suitability for a large commercial site operating during major capital works.
The comparison below highlights the average annual management cost per lot and the resulting savings achieved through the tender process.
While the reduction in management fees was significant, Committee members consistently noted that the greater value came from clarity.
The process gave them a clear understanding of
- what services were included
- how fees were structured
- how each manager proposed to support the site during major façade works
This transparency reduced uncertainty and allowed the Committee to make a decision based on evidence rather than assumption.
Outcome: confidence without disruption
By structuring the process carefully, the OC was able to test the market while façade works continued. The incumbent manager was assessed alongside genuine competitors, allowing the Committee to select a management solution suited to a complex commercial site.
Importantly, this was done without disrupting contractors, project reporting or works already underway.
What initially felt like a high-risk decision became a controlled and well-managed transition, with a new strata manager appointed while the façade project continued without interruption.
Why this matters for other commercial OCs
Commercial and mixed-use OCs often delay change because the perceived risk is higher, particularly when major works are already underway.
This case demonstrates that with the right structure in place:
- cost concerns can be tested without rushing decisions
- competitors can be compared on a fair and consistent basis
- active projects can continue without disruption
- Committees can make decisions more effectively
For complex commercial sites, a measured and transparent process can reduce risk rather than create it.
Considering a change of strata manager for your commercial property?
If your OC manages a commercial or mixed-use site and is unsure whether the timing is right to test the market, Strata Management Consultants can help you understand your options while protecting projects already underway.
We are able to provide compliant review and tender support that allows costs, service capability and risk to be assessed with clarity.
To discuss your situation, you can speak with one of our consultants at (03) 9007 2618 or visit us here.
